Atlanta, GA, May 08, 2008 --(PR.com
)-- Franchise Genius, the industry’s most comprehensive and efficient destination for franchisors and prospective franchisees to connect with each other, delivers the first in a series of “Best Practices in Franchising.” Given the current economic conditions, accessing money is paramount for small businesses to grow or simply keep their doors open.
A study by Capital Access Network (CAN) Small Business Barometer indicates that small businesses see their own credit crunch (their access to lines of credit) outweighing all other business obstacles in 2008, beyond staffing, seasonality and energy costs. Drawing down previously reliable resources, BusinessWeek recently reported that 368 banks have left the Small Business Administration’s 7(a) lending program in the last two years due to complexity of rules and paperwork.
“Having been immersed in the financial markets for 20 years, I am particularly sensitive to the challenges of sourcing capital for new or existing ventures, particularly franchise concepts which often face enormous competitive challenges and seasonality,” explains Angus Hill, founder of Franchise Genius. “In addition to providing prospective franchisees the source for finding, evaluating and selecting their future franchise business, Franchise Genius is committed to providing efficiencies and recommendations that will support the process of establishing a successful business venture. We believe our Best Practices Series can do just that.”
Looking for Alternatives to Securing Working Capital
Historically, business owners have relied on traditional bank lending or the Small Business Administration -- both of which have lost favor in recent years with entrepreneurs due to rejection rates attributed often to credit scores and time-consuming, complicated application processes.
Merchant Cash Advances, otherwise known as “credit card receivable funding,” are an increasingly popular solution for small businesses seeking a flexible form of working capital. As use of credit cards at retail establishments and other businesses increases, small business operators are now able to tap in to a previously unrecognized form of capital: their future credit card receipts.
AdvanceMe, Inc., a leading provider of Merchant Cash Advances, focuses less on measures such as credit scores, placing greater emphasis on a businesses’ track record of card sales and its predicted future card sales.
“What I like about a resource such as AdvanceMe is the fact that it balances the importance of screening applications for funding with the realities of the small business environment which says, ‘make it easier and faster for me to get money with an acceptable retrieval process,’” adds Hill. “That model must be working because 3 out of 4 eligible merchants choose to renew their Merchant Cash Advance with AdvanceMe.”
“Franchise Genius serves as a rich source of information for the thousands of individuals and small businesses that need a place to research and understand the variety of franchise concepts in the marketplace,” explains Glenn Goldman, chief executive officer of AdvanceMe, Inc. “We believe that the current financial environment is causing havoc on America’s small businesses and now more than ever, small businesses need access to credible alternative financial resources such as Merchant Cash Advances. AdvanceMe has served more than 100 different franchise concepts during our ten year history and strives to ensure their success.”
Additional Sites Worth Sourcing
Alternative funding options are gaining awareness; it is important to note that in addition to Merchant Cash Advances, there are several new online communities offering traditional loan products.
• Prosper: An online community for lending and borrowing money for consumers and businesses with emphasis on varying loan options. www.prosper.com.
• Zopa: Connects borrowers with credit unions, recently launched in December. www.zopa.com.
• Lending Club: Started as a Facebook application and is now available in all 50 states. www.lendingclub.com.
About Franchise Genius
Franchise Genius LLC develops and operates the franchise industry’s most innovative and effective online solutions to connect prospective franchisees and franchisors. FranchiseGenius.com, the company’s flagship online site, provides prospective franchisees with the industry’s most comprehensive database of 1,800+ franchise and business opportunities across more than 100 markets with sophisticated search, evaluation, and selection tools to help entrepreneurs select their ideal business opportunity. Franchise and business opportunity sellers benefit from the industry’s most powerful lead generation and management system that can be integrated into the franchisor’s existing in-house sales efforts. Founded in 2007, Franchise Genius is based in Atlanta, Ga. For more information, visit www.franchisegenius.com.